DESERT DIRT INDEX VALUES AS OF FEB 28, 1998:
NOTE: During the month of February, the DD Indices were down an average of 18%, with all companies down,with the exception of MXAM which was flat: NAXOF was down 11%, GPGI down 12%, CHIP down 18% and IPMCF down 54%.
During the week of Feb 2, CHIP announced gold and silver assays fon its Arizona Cochise property, yielding per ton valuations of approximately $45, recoverable by conventional mining methods. Also, NAXOF announced plans for a pilot recovery plant and permitting for an additional 200 drill holes at Franklin Lake.
During the week of Feb 9, IPMCF announced that it would request a hearing regarding a determination to delist their common shares from trading on the NASDAQ SmallCap.
During the week of Feb 23, MXAM announced plans to form a subsidiary company to provide custom recovery services to other mining companies using the MAXAM/Hewlett Chlorine Bromine leach process. A batch facility capable of treating 10 ton/day of concentrated ore is planned for July 1998, with a 30 ton(concentrate)/hour plant scheduled to come on stream in July 1999. (Note: These facilities are additional to the 1000 ton/day recovery plant scheduled for startup on the Peoria property in second quarter 1998.)
For the year of 1998 through Feb 28, MXAM's stock price is unchanged, NAXOF is -22%, GPGI is -30%, CHIP is -41% and IPMCF is -44%.
A basket of the five stocks is down 24-27% on the year, depending on the particular indice.
DATE__________"DDI-CAP"________"DDI-SHR"_________"DDI-DOL"
FEB 27____________758_______________736_________________726
FEB 20____________843_______________810_________________762
FEB 13____________758_______________744_________________754
FEB 6_____________866_______________876_________________944
JAN 30____________903_______________903_________________923
JAN 23____________918_______________916_________________966
JAN 16___________1028______________1015________________1030
JAN 9 ____________912_______________924_________________966
DEC 31___________1000______________1000________________1000
NOTE: For the year 1997, the "CAP" index was up 9.5%, the "SHR" index was down 6.8%, and the "DOL" index was up 19.3%. These indices were based on a basket of stocks purchased Jan 1, 1997 on the same basis as described below.
BACKGROUND
Market Indices for the basket of 5 "Desert Dirts" have been calculated for three different investments.
(1) MARKET CAPITALIZATION (DDI-CAP) - Assumes $1000 invested in the 5 stocks on the basis of the proportionate value of the market capitalization of the stocks as of 12/31/97.
(2) EQUAL SHARE AMOUNTS (DDI-SHR) - Asssumes $1000 invested by buying equal number of shares in the 5 stocks based on their 12/31/97 closing prices.
(3) EQUAL DOLLAR AMOUNTS (DDI-DOL) - Assumes $1000 invested by buying equal dollar amounts of the 5 stocks at their 12/31/97 closing prices.
Initial values for the three investments were calculated as follows, using estimated shares outstanding as of Dec 31, 1997:
STOCK__________CHIP______GPGI______IPMCF_____MXAM______NAXOF
MM SHARES ______12.2________21__________21_________45___________34
12/31 PRICE_______0.56_______1.88_________1.28_______0.38_________6.25
"CAP" SHARES____40.3_______69.4_________69.4_______148.8_______112.4
"SHR" SHARES____96.7_______96.7_________96.7________96.7________96.7
"DOL" SHARES____357________107_________156_________533_________32
With these share amounts, index values were calculated as above |
